My first 1040NR.... maybe.

[ADK2ATX]

I have a potential client that is a non-resident alien (does not even come close to the 183 day test) whom is on an L1 visa and the spouse and two kids are all on an L2 visa.  I have never prepared a return for a non-resident and would like to get some advice before deciding to take on this client or to take a pass on this one.

The husband's employer has initiated the green card process.  The kids do not have ITIN numbers yet and the parents would like to claim them.  Other than that, their taxes are easy: one W2 and one 1099G.

I believe that the best course of action would be to do the following:

1.  Help them fill out the children's ITIN application.

2.  Wait until we have the ITIN, possibly filing an extension.

3.  Complete the 1040NR with the children claimed as dependents.

4.  Complete Form 843 to ask for Social Security back?

Does this sound correct?  Am I missing a lot? 

Thanks for all the help.

 

[Max W]

Steps 1 - 3.

Fill out the form and for the missing ITIN's write "applied for" in the SSN box.

Send the completed W-7's along with the required documentation on top of the return to 

Internal Revenue Service

ITIN Operation

Po box 149342

Austin TX 78714-9342

The return and the W-7's will both be processed there.

 

 

[Pacun]

If I am not mistaken, you need to consider the days they were here in the previous two years to see if they are a "resident" or not. Also, remember that only one of the filers need to be a resident for the other to become a "resident for tax purposes"... provided they make the decision and inform the IRS that they are reporting global income.

Do not right anything on the social security box for the kids if you are requesting an ITIN.  As you know, the IRS knows that a number is applied for when a W7 is attached. Also keep in mind that the person issuing the ITIN (since it is paper filed), most likely will write the just assigned number to the 1040 and send it to the other department for the 1040 to be processed as every other return.

One more point, you MUST file the return at the same time you are requesting the ITINs if done during tax season. It is easier for everybody.